Business

Kohl's Joins Macy's In Forecasting Weak Holiday Sales

Kohl's (KSS) shares fell sharply in more than five times normal volume early Thursday after it threw more water on prospects for a happy shopping season, beating third-quarter earnings estimates but saying it expects holiday sales growth will miss Wall Street targets.

The family-oriented department store chain also said it may have to offer discounts to draw cautious consumers in.

The company sees $2 to $2.08 earnings per share this quarter, far below the consensus of 23 analysts polled by Thomson Reuters for $2.16 a share. The crucial holiday season accounts for about 40% of the company's annual revenue.

Kohl's stock, which had been trading near a 52-week high, was down 3% Thursday morning, trading just above its 50-day average.

Direct rivals Macy's edged down a few cents and J.C. Penney (JCP) was off 2.5%.

Kohl's CEO Kevin Mansell said the company is stocking up for holiday shoppers.

"We have made noticeable investments in holiday inventory — both in depth and content — and the in-store experience," Mansell said in a statement.

Last quarter, Kohl's returned to growth after two periods of declining profits compared to the same quarters a year earlier. Revenue growth has been uneven, as it reported sales growth of 0%, 2%, -1% and 3% year-over-year over the last four quarters.